Derry Corporation is expected to have an EBIT of $2.1 million next year. Depreciation, the...
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Derry Corporation is expected to have an EBIT of $ million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $ $ and $ respectively. All are expected to grow at percent per year for four years. The company currently has $ million in debt and shares outstanding. The companys WACC is percent and the tax rate is percent. You decide to calculate the terminal value of the company with the pricesales ratio. You believe that Year sales will be $ million and the appropriate pricesales ratio is What is your estimate of the current share price? Note: Do not round intermediate calculations and round your answer to decimal places, eg
Derry Corporation is expected to have an EBIT of $ million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $ $ and $ respectively. All are expected to grow at percent per year for four years. The company currently has $ million in debt and shares outstanding. The companys WACC is percent and the tax rate is percent. You decide to calculate the terminal value of the company with the pricesales ratio. You believe that Year sales will be $ million and the appropriate pricesales ratio is What is your estimate of the current share price?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
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